The Best Times to Buy a Used Car

The Best Times to Buy a Used Car

Buying a Used Car

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Buying a Used Car

There's no getting around it: The COVID-19 pandemic that began traveling around the globe in 2020 affected everything, including how we buy cars. Protecting workers from illness meant fewer people in factories and sometimes shutting down manufacturing lines. That led to fewer cars being built but also fewer components for those cars being available as quickly as they used to be. Once the vehicles were built, shipping them around the world became more challenging, whether they were headed out by boat, truck or train.

All of this put a strain on the new car market, which in turn squeezed the used car market. At the end of 2021, average prices were higher than usual for both new and used cars. The supply of used cars at dealerships was more unpredictable than it used to be, so the cars on the lot are moving more quickly. Two years into the pandemic, used cars remain on the lot for an average of 44 days, and they have about 68,000 miles on the odometer. Both of these statistics are an improvement over earlier in the pandemic, when used cars were selling even more quickly.

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Most experts are optimistic that this improvement will continue. But they do predict that we will be well into 2022 or even 2023 before things go back to "normal" in the car market.

This doesn't mean we have to throw out all the conventional wisdom we've learned over the years about buying used cars. If anything, these pieces of advice are more important than ever to help you find a good used car even in a tight market.

With that in mind, let's take a look at the best times to buy a used car.

If you wait until your car completely falls apart and dies, you'll find yourself desperate for a new-to-you used car. This is a recipe for overpaying for a car that might not meet your needs so you can get to work in the morning.

When you know your mileage is climbing or your family situation is changing, take the time to begin the used-car buying process now. Start your research on features and set your budget, then scope out dealerships and private sales to get the lay of the land.

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There is a silver lining for some while the used-car market is tight with many people still working from home. If it's possible, you could sell your car now while you don't have a commute and wait to buy a used car when prices are lower and inventory has rebounded.

You may remember seeing ads on TV or banners on websites advertising amazing deals on certified pre-owned (CPO) vehicles in years past. Those days are not quite gone, but the deals are harder to come by.

That said, it is always worth checking local deals on CPO vehicles, especially around certain holidays. Black Friday is a pretty reliable day for deals, and they often extend over the long Thanksgiving weekend. Also, look for deals around Memorial Day and Labor Day.

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You'll want to avoid buying a used car on holidays when people usually get together with family, such as Easter or Mother's Day. Dealerships are more likely to be understaffed, and private sellers will be more focused on family events than selling you a car.

This is a classic piece of car-buying advice, and it still holds up: dealerships have quotas to meet, and you can get a deal by helping them meet that quota. There are often deadlines set at the end of the month, the end of the quarter (so in March, June, October and December), and the end of the year. A salesperson or department that's a few cars short of their goal may be willing to negotiate.

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While used car inventory is tight, your negotiating power as a buyer is lower. But check a dealership's stock online. Vehicles that have been on the lot for a while – say, longer than that average of 44 days – may have more wiggle room on the price.

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This tip is especially important when inventory is tight and sellers, either private or corporate, want to take advantage of higher prices. On a dry day with good lighting, it's easier to see dents, dings, scratches, rust, bubbling paint and any other flaws the exterior may have. You're also more likely to be willing to take the time to look for these flaws when you're not being soaked by snow or rain.

Convertibles are for top-down fun in the sun, which means they're not big sellers during winter months in cold climates. If you're looking for a used convertible, try buying in the cold season when you have more negotiating power.

Similarly, SUVs are more popular purchases in the fall, when school is starting and weather is turning worse. This is particularly true of SUVs with all-wheel or four-wheel drive. However, midsize and large SUVs do use more gas than smaller cars and crossovers, so in the spring, sellers often want a change for a more fuel-efficient vehicle before they head out on summer road trips and higher gas prices hit during the hotter months. If gas mileage isn't your number-one concern, buying an SUV as the weather begins to warm up could save you money.

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Certified pre-owned cars are used, but they've been checked out and repaired by a dealership, and they're likely to have lower mileage than the average used car on the lot. Many of them have come off a three-year lease and their owners swapped out for a newer model.

The supply chain squeeze on new models means there are also fewer CPO vehicles available. That also means that the offers dealerships used to advertise for these cars are harder to find. You may get a better rate through your bank or credit union in the short term. We're seeing that sales are slowing for this segment, so more and better CPO deals may be back in the next year or two.

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The days are shorter, the weather is worse, and no one wants to drive all over town test driving cars. But if you're up for it, these are all the reasons it can be a great idea to buy a used car in winter. With demand being a little lower in the winter, prices also tend to be a little lower.

If you can time your used-car shopping around the New Year, you can hit several pieces of advice in one go: it's a holiday, it's in the winter, and it's at the end of the year. If you're shopping for a convertible, so much the better.

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It almost goes without saying that the best time to buy a used car is when you've done your research. You should check listings to see what models are available in your area, consider which features you want, set your budget and check interest rates. Being prepared is especially important now when there are supply chain issues, low inventory and higher prices on both private and dealership sales.

When you've done your research, you'll recognize the used car for you the moment you see it. You'll be able to jump on an opportunity quickly and negotiate wisely. You'll be able to recognize flaws or missing features in the model you test drive and know if it's a deal-breaker or something you can live with.

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It may take more time to find a good deal on a used car. But taking this time can be a plus rather than a minus. You might be able to wait out the shortages. Prices should fall over the next couple of years, so keep a close eye on the market and buy the used car you've prepared to buy when you find it.

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U.S. News Best Price Program

Save on your monthly payments! Find the best local prices on your next car.

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